A professional employer organization (PEO) helps businesses manage payroll, employee benefits, HR administration, and other employment responsibilities through a co-employment agreement. Your business continues to manage employees and daily operations, while the PEO handles the services specified in your contract.

PEOs typically charge a fee per employee or a percentage of payroll. Your total cost depends on your workforce, services, benefits, insurance, and any additional fees. When comparing providers, request an itemized quote that separates administrative fees from wages, taxes, benefits, and insurance costs.

Start by identifying the support your business needs, such as payroll processing, benefits administration, or HR guidance. Compare providers on service scope, total costs, benefits options, technology, support, and contract terms. Confirm which responsibilities remain with your team and how the PEO works with your existing workforce management tools.